Australia and NZ Agribusiness Review June 2008
I thought you might be interested in the June 2008 Australia and New Zealand Agribusiness Review from Rabobank.
• Both the RBNZ and RBA left interest rates on hold this month, however Australia appears to have a firmer bias than NZ where local economic conditions appear to have deteriorated. The NZD reacted to the news by moving lower.
• Despite the generally dry Autumn, some reasonable rainfall has been received in key grain growing regions in Australia allowing planting to proceed and dry sowing crops to emerge. More rain will be required through June to establish a good winter crop in 2008.
• Global meat prices appear to be finally responding to tighter supplies and higher feed grain costs with 90CL imported cow beef prices in the US lifting substantially in May, reaching 158c/lb in early June, with local prices reaching US172 c/lb, up some 19% on the month.
• The expected winter surge in New Zealand and Australian lamb prices is underway with rainfall over the past few weeks being the major catalyst in Australia. The Eastern States Trade Lamb Indicator reached AUD3.84/kg and the New Zealand South Island lamb price was NZD4.01/kg in early June, some 25% higher than the same time last year.